One of the factors that allows someone to get credit approval from a bank or other financial institution is BI Checking. This is because when applying for credit to a bank, the process requires BI Checking, whether applying for Unsecured Loans (KTA), Home Ownership Loans (KPR), or credit cards .
BI Checking itself is Historical Individual Debtor Information (IDI) which records the smoothness or failure of credit payments (collectibility). Previously, BI Checking was a credit history information service in the Debtor Information System (SID), where customer credit information was exchanged between banks and financial institutions.
In SID, the information exchanged includes the identity of the collateral debtor, the owner and management of the business entity that becomes the debtor, the amount of financing received, and the history of credit installment payments, up to bad credit.
Meanwhile, every bank and financial institution registered with the Credit Information Bureau (BIK) can access all information on the SID, including BI Checking. These customer data are provided by BIK members to BI every month which are then collected periodically by BI and integrated into the SID system.
As quoted from the Financial Services Authority (OJK) website, SID has now changed its name to the Financial Information Service System or SLIK. The background to this name change is because the banking supervision function is no longer under BI but is given to OJK.
At SLIK itself, the credit history information service for banking and other financial institution customers is called the debtor information service (iDEB). Within the iDEB, banks and financing and financial institutions have access to debtor data and are required to report debtor data to the Debtor Information System (SID).
As quoted from BI’s official website, BI Checking or Historical IDI stores the identity of the debtor, owner and management, facilities for providing funds or financing received, collateral, guarantor, and collectibility. All information from BI reporting can be accessed by financial institutions, both banks and non-banks, 24 hours a day as long as they are registered as members of the Credit Information Bureau.
From this SID, information where every debtor customer who has ever applied for credit will be given a score based on his credit record. The determination of the credit score is seen from the collectibility record of the prospective debtor (credit taker). The credit score given is calculated from 1-5. The following is the distribution of credit categories based on their scores in BI Checking.
Credit score details based on BI Checking:
- Score 1: Current Credit, meaning that the debtor always fulfills his obligations to pay installments every month along with the interest until it is paid off without ever being in arrears.
- Score 2: DPK Credit or Special Mention Credit, meaning that the debtor is recorded as being in arrears on credit installments of 1-90 days
- Score 3: Non-Current Credit, meaning that the debtor is recorded as being in arrears on credit installments of 91-120 days
- Score 4: Doubtful Credit, meaning that the debtor is recorded as being in arrears on credit installments of 121-180 days
- Score 5: Bad Credit, meaning that the debtor is recorded as having been in arrears on credit installments for more than 180 days.
From a score of 1-5, the bank will reject a credit application for a prospective debtor whose BI Checking gets a score of 3, a score of 4, and a score of 5 which of course is included in the BI Checking Black List. Because banks don’t want to take risks at all if later the loans given are problematic or non-performing loans (NPL).
Non-performing loan (NPL) itself is an important indicator used to measure how healthy a bank is. The existence of NPLs causes the bank’s capital to decrease so that it has an impact on future lending.
Meanwhile, the Bank’s preferred BI Checking of prospective debtors is those with a score of 1. Then a score of 2 still needs to be monitored because it is feared that at any time the credit under this special attention could have an impact on NPLs.
How to View BI Checking
Apart from BIK members, SID information can also be accessed by the public, in this case the community. For people who want to know their credit records, they can submit SID information to the OJK office where this service is free of charge. The following is an explanation of looking at BI Checking as quoted from the OJK website.
The procedure for viewing BI checking which has now changed to SLIK
Prepare original identity cards, ID cards for Indonesian Citizens (WNI) or Passport for Foreign Citizens (WNA) for individual debtors, while business entity debtors are required to bring a photocopy of the identity of the business entity and the identity of the management by showing the original identity of the business entity. Come to the OJK office in Jakarta or OJK representative offices in the regions. Fill in the SID application form.
If the documents are complete, the OJK officer will print the iDEB results.
How to see BI checking online
Fill in the form and queue number
Upload scanned photos of the required documents, namely KTP for Indonesian citizens and passports for foreigners. For business entities, it is mandatory to attach the identity of the management, NPWP, and deed of establishment of the company.
If everything has been completed, click the “Submit” button after previously filling in the captcha fields
Wait for the confirmation email from OJK containing proof of online SLIK queue registration
OJK will verify the data, and the applicant will receive notification from OJK in the form of online SLIK queue verification results no later than D-2 from the queue date
If the data submitted is valid, the customer can print the form on the email and sign it 3 times
A photo or scan of the signed form must be sent to the WhatsApp number listed in the email along with a selfie photo by showing a KTP
Cleaning BI Checking
Poor BI Checking or Historical IDI gets a score of 3 because unpaid or arrears installments can be annoying when you want to apply for credit. However, BI Checking with a bad score can become clean by doing the following things.
Credit installments or debts that are in arrears are paid off immediately. Because at any bank you apply for credit, it is guaranteed that you will not get approval if your score or the quality of your credit record is still poor.
After paying off credit or debt installment arrears, monitor your BI Checking and see if the score has changed. If nothing has changed, you can submit a complaint to the bank where you took the credit.
Bring a letter of explanation or clarification from the bank where you applied for credit, then confirm to the OJK that you have completed your credit obligations. Then wait until BI Checking is declared completely clean.
After understanding what BI Checking is and how to view and clean it, it’s a good idea to plan your finances so that they are well managed. One way that can be done is to open a savings account.